COMPANY NO.. 04243510 CHARITY NO.. 1087839 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Page Governors, Officers and Advisers Report of the Governors 3-10 Directors. Report Strategic Retx)rt Statement of Governors, Responsibilities 11 Independent Auditors. Report 12-15 Statement of Financial Activities 16 Balance Sheets 17 Cash Flow Slalement 18 Notes to the FinancSal Statements 19-37 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEE) GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 REGISTERED OFFICE & PRINCIPAL ADDRESS.. Holme Park SDnning-on-Thames Reading RG4 6SU DIRECTORS.. H Williams DFew P Gillibrand C Green L Hague C Hubbard Revd J Taylor, P Bertram P Elherington N Bruce M Smilho A Colpus M Rumbelow A Chandar C Freeman (Chair ol Governors) (Resigned 12 June 20231 (Resigned 24 October 20221 (Resigned 20 March 20231 (Resigned 12 June 2023} Ex-officio, Vicar of Sonning (Resigned 23 August 20231 {Resigned 31 December 20221 (Chair of the F&GP) (Appoinled 24 March 20231 (Chair ol Safeguarding Commlllee, Appointed g January 20231 (Appointed 9 October 20231 (Appointed 9 October 20231 H Roberts S Taylor Member of the Finance and General Purpose Committee Ex officio appointment Member of Safeguarding Committee Member of Education Committee Lead Health and Safety Govemor The Govemors are also Directors of the Company and Trustees ol the Charity. OFFICERS Headmaster.. Bursar and Company Secretary.. P Thomas T Tabrah BANKERS: Lk)yds Bank plc Market Place Reading Berkshire RG12EQ SoLIC￿oRS. Blandy & Blandy LLP 1 Friar Stre81 Reading RGI 1DA AUDITORS: Crowe UK LLP Aquis House 49- 51 Blagrave Street Reading RG1 1PL Page 1 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GLIARAtrQTEEI GOVERNORS, OFFICERS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 INSURANCE BROKERS: Marsh Limited 4 Milton Road Haywards Heath Wesl Sussex RH16 1AH WEBSITE.. ww.rbcs.org.uk KEY MANAGEMENT: P Thomas E Trelinski K Magill G Williams R Tidbury T Tabrah J Jarrett Headmaster Second Master Deputy Head (Slaffl Deputy Head IPaslorall Deputy Head (Academic) Bursar and Clerk lo the Governors Dire¢lor ol Admissions & MarkelirvJ (Resigned 9 July 20231 Foundation Director Deputy Head {Co.Curricularl Director of External Relations (Appointed 19 September 2023) Head of HR S Bunnell-Pyper K Richardson F Robinson l Gregory Page 2 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GLIARANTEEI REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2023 The Govemors of the School present their annual report for the year ended 31 August 2023. in accordance with the Charili&s Act 2011 and the Companies Acl 2006, thus including the Directors. Report and Strategic Report under the 2(K)6 Act, together with the audited financial slalemenls for the year, and confirm that the laller comply with the requirements of the Companies Act 2006, the Company's Memorandum & Articles ol Association and the Charities SORP 2015. DIRECTORS, REPORT REFERENCE AND ADMINISTRATIVE INFORMATION Reading Blue Coal School I'the Company" the School. or'lhe Charill'}, is a charitable company limited by guarantee. company registration number 04243510 and charity registration number 1087839. In the event of the Company being wound up, the liability ol each member is limited lo a maximum of £1. Readlng Blue Coal School was founded in 1646 by Richard Aldworth, to proyide'educalion and upbringing" to children. The chaiitable company was in¢orporaled on 29 June 2001 and registered as a charity on 2 August 2001. The Govemors, Offlcers, Key Addresses and Advisors are sel out on Pages 1 and 2. The Company has a wholly owned subsidiary. Reading Blue Coal School (Trading) Limited. The School is an active member of the Headmasters and Headmistresses Conference, the Society of Heads, the Association of the Governing Bodies of Independent Schools and the Independent Schools, Bursars Association. STRUCTURE, GOVERNANCE AND MANAGEMENT Govgrning Document The S¢hoDI is governed by ils Memorandum and Articles of Asso¢ialion, last amended on 2 August 2001. Governlng Body The Governors are all Directors of the Company and appoint new Govemors either to fill a casual vacancy or by way of additions ID the Board. One of the Governors is an ex-efli¢io appointment and other Governors are appointed initially by the Governing Body. They are then subject lo election by members of the Company for a Ihree-year period at an Annual General Meeting. Retiring Governors are able to stand for re-election by the members. Those who hekl office during the year ar8 listed on Pagg 1. Recruitment and Trainlng of Govemors Potential Governors are identified by members of the Governing Body and considered against the Body's specifications concerning eligibility, competence, specialist skills and local availability. Training is regularfy offered lo all Governors. Bespoke courses Are held In conjunction with Governors, meetings to address P8rticular areas. Corporate Governance The Governing Body is mindful ofthe principles and recommended practice set out in the Charity Governance Code for larger ch2rilies. and believes that il applies. much evidenced in this annual report. the specified principles of organisalional purpose. leadership, inlegrily, decision making, risk and control. board effectiveness. diversity, openness and accounlabilily. Page 3 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GVARANTEEI REPORT OF THE GOVERNORS {CONTINUED> FOR THE YEAR ENDED 31 AUGUST 2023 Organisational Management The m&mbers of the Governing Body are legally responsible for the overall management and control of the Schcol. The Governing Body meets a minimum of three limes a year. Much of the preparation for these meetings is undertaken by sub-commillees ahead of each Govemors, meeting. The principal commillees are the Education Committee, chaired by the Headmaster, the Finan￿ and General Purpose Committee, Chaired by Mr Elheringlon, and the Safeguarding Committee, chaired by Mrs Freeman. The Headmaster and Bursar allend meetings of the Governing Body and ils Commillees along with other members of Key Management where approprialg and invited. Risk Management The Governing Body is rèsponsible for ensuring that the risks faced by the Charity are properly assessed.11 is aware of the importance of protecting the business as far as possible from operational and reputational damage. as well as from the risks of unpredictable crisis and disaster. Risks are examined each year when updating the Risk Register and in the process of strategic planning. The generic key controls used by the School to manage risk include: Preparation and periodic review of the Risk Reglsler. Formal agendas and minutes lo support decisions on all Committee and Governing Body aclivilies. Comprehensive strategic planning. budgeting and management accounting. Established organisalional and governance structure and lines of reporting. Formal wrillen policies. Velling procedures as required by law for the protection of vulnerable people. Clear hierarchical aulhorisalion and approval levels. The abova structur8 formalises the risk management processes established forthe Charity. Through these processes, the Governors identify the major risks lo which th8 Charity is exposed and review the systems and procedures established lo rllanage them. Nevertheless, il is recognised that such systems can provide only reasonable bul not absolute assuran¢e that major risks have been adequately addressed and can be managed. Key Management Personnel The School's Key Management personnel are listed on page 2. The remuneration of key management personnel is sel by the Chairman and the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and ol rewarding them fairty and responsibly for their individual contributions lo the School's success. The appropriateness and rel8van¢e of the remuneration policy is reviewed annually. indudlng reference lo comparisons with other indep&ndenl schools to ensure that Reading Blue Coal School remains sensitive lo the broader issues of pay and employment conditions elsewhere. PROVISION OF INFORMATION TO AUDITORS The Governors are responsible for ensuring that the Governors, Report and other information included in the annual report is prepared in accordance with company law in the United Kingdom. So far as each of the Governors is aware at the lime the reFX)rt is approved.. There is no relevant audit infomalion of which the charitable company's audllors are unaware., and Each Governor has taken all steps that they ought to have taken lo make themselves aware of any relevant audit information and lo establish that the auditors are aware of that inlormalion 1s.234ZA{211. Page 4 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI REPORT OF THE GOVERNORS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 AUDITORS In accordance with Section 485 oflhe Companies Act 20D6, a resolution proposing the appointment of Crowe UK. LLP as audilors of the company will be pul lo the Annual General Meeting. STRATEGIC REPORT OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES Charilable Objects The main Object, as sel oul in the charitable company's Memorandum of Association, is the advancement of education by carrying on or rnanaging schools for boys and girls under the age of 19 years, in which religious inslruclion, in accordance with the do¢trines of the Church of England, shall be given. The Schwl's policy is to PTovide an all-round education enabling pupils lo achieve high academic standards and, through co-curricular activities. lo develop character, the self-conlidence and self-discipline lo make them valued members of society. It is the long-lerm policy of the School lo maintain the number of free means-tesled places IFoundalion Scholarships) lo reflect the original intention of ils founders and benefactors. STRATEGIES TO ACHIEVE THE PRIMARY OBJECTIVES Objectlves for the ygar To maintain the achievement of high academic and value-odded performance across a broad range of subjects at GCSE and A Level. To maintain the provision of co-¢urricular activities and pastoral care. To make better use of the buildings available at the School lo improve amenities for staff and pupils. The provision of sufficient free and financially supported places al the School lo meet the means tested demand. Strategies to achieve the year's obJe¢tives Recruit and retain huh calibre teachers ¢ommittod lo providing excellen￿ in education. Ulilise areas of the School's premises released by previous developments lo provide beller facilities. Maintain and fill the number of means-tesled Foundation Scholarships in the School. Provide adequate levels of bursarial support in the School lo meet the demand. ACHIEVEMENTS AND PERFORMANCE Headmaslerfs Statement The academic year ending 31 August 2023 hegan and finished well. We are an unashamedly academic schod, as allesled by our strong A Level and GCSE results. Our 2023 cohort allained almDsI 17.kn A. grades, which is the highest percentage in full publlc exams Iwilhoul a Covid Influen￿). with over 42Q/o gaining A"_A and just over 74% achieving A"_B. At GCSE, 78.3QA of grades were awarded al 7 or above and 92.4 /0 of grades at 6 or above., excgllent results of which both pupils and staff can be rightly very proud. 830/0 of our leavers went to their first-choice university destinallon. with 78% of these being Russell Group 'Plus' (including Bath, Loughborough, SOAS and Royal Holloway universities). Numbers in the School remain healthy (around 7901, although slightly uneven Sixth Fom year group sizes have meant the overall roll has reduced from two years ago. As a School. we are mindful of the economic and political pressures facing independent education and are therefore ensuring that the offering of the School- academic, pastoral, co-curricular- is excellent value for money and ext￿melY attractive to families. Recognising the changing social landscape loo, and whilst in a FX)Sition of financial slr8nglh, we are also appealing lo a broader market and continued lo build on the strategic decision lo move lo a fully co- educallonal model by 2027. Page 5 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Thaljoumey has begun very well, with our first co-educational Cohort arriving in Year 7and sellling very swiftly and happily into Blue Coal life, and with interest for future places stronger than it has ever been. Prudent optimism is both justified and necessary as we move forward. Development of Facilities The School has undertaken the following development projects during the reporting period.. Finished the renovation of the lop floor of School House into a new suite of classrooms for use by the Business and Economics Department. Installed a new loilel block for the Lower School Common Room, as well as landscapèd the a around the building. Extended and refurbished girls changing facilities in the Sports Hall. Extended and ￿furbIShed the Vvellbeing and Medical Facilities Centre. Refurbished the Reception area and created a numbgr of new meeting rooms around the School sile. Refurbished the dassrooms in the Messer leaching building. Upgraded the School's fire alarm system. Refurbished the Library Reading Room. Enabled various projects in order to provide facilities for Year 7 girls lo join in September 2023. Grant-making This year. the value of academlc scholarships made, based on individuals. academic ability. was £41,315 {2022.' £52,313). The value of means-lesled bLJrsaries made lo the School's pupils amounted lo £781,459 (2022.. £787,705). A tnaximum of 14 full Foundation Scholarships are available al the School. The GovernoTS' policy is to make Ihesg awards on the basi5 of the individual's educational abllily. subject to means testing. Fundralslng perf0rn7ance During this year the Foundation Office has continued lo engage with the community so as lo further advan fundraising aclivily. We launched our fundraising campaign, 'Defined by Vision, United by Ambition,, in March 2022 and are seeking lo raise £4million by 2032 thus doLJbling the School's endowment and the amount of Foundation Scholars al the School from 14 10 28. We have received some larger donations for the campaign and have a handful a direct debits coming in each month. Our legacy giving society, the Richard Aldworth Society continues to grow, now includes 11 members. This year, we will carry out wealth s¢reening by way of identifying high nel worth individuals in the hope that they will be able lo help us reach our goal for the campaign. For the year, donations tolalled £190.41812022.. £481,380),. including unreslrictecl funds of £35,831 and reslricled funds for the provision of bursaries of £147,587. Of this. £139.00012022.' £139,000} was received from Reading Blue Coal and Archbishop Laud Charitable Trust to fund means-tesled bursaries lo pupils. There is no change lo how fundraising activities for the School are conducted. These are currently only conducted by School staff and all fundraising activities are managed by the Foundation Director with overall managemonl by the Headmaster and oversight by the Governing Body. The Foundation Office continues lo focus on developing a voluntary fundraising programme for the School in line with ils Charitable aims of managing a School for boys and girls under the age 0119. No complaints have been received relating lo fundralsSng activities by the School during this reporting period. The School has a complaints procedure in place should any complaints arise fr(xn our fundraising activity. The School is registered with the Fundraising Regulator. This will be renewed in December 2023 and the logo has been added to OLJr website and will be added lo fundraising collateral in due lo course to indicate we are compliant. The School continues lo comply with the Code of Fundraising Practi￿ published by the Fundraising Regulator and ils own Fundraising Policy which was reviewed in September 2022 and will be reviewed again in December 2023. The School Continues lo be a member of the Inslilule of Development Professionals in Education IIDPE). Page 6 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 The School upholds appropriate standards for the operation and management of its fundraising aclSvS1ies. We continue lo ensure vulnerable people and other member of the School's communily are protected and that no fundraising activity results in a member of the o)mmunily being coerced into giving a gift against their FINANCIAL REVIEW AND RESULTS FOR THE YEAR Financial Results The financial results for the year are shown in the slalemenl of financial activities on page 16 which shows nel income before transfers of £339,569 {2022.' £1,627,207>. Included within the result is a pre gill aid surplus of £123,478 12022.. £138,491) attributable to the School's wholly owned trading subsidiary, Reading BILJe Coal School (Trading) Limited. The School introduced a managed school transport network during the year and this is reflected in the year on year variation in ancillary trading income and related expenses. The level of surplus for the year generated in the unreslricled funds was £436,609 {2022.. £1.562.6231. Some of the surplus generated is required to fund rèpayments of outstanding bank loans and some will be used to finance future capital expenditure projects with the aim of continually improving the School's fa¢ililies. In the opinion of the Governors the market value of the land and buildings of the School is not less than the book value in the accounts. RESERVES LEVEL AND POLICY The School's funds are held lo maintain the leasehold property and to cover normal fluctuations in working capital. The School's assets are sufficient to meet its known and ong¢ing obligations. The School aims lo maintain the following.. Sufficient cash rese￿eS lo cover the working capital requirements of the School. Further implemenlalion of the campus development strategy taking into account the requirements of extending co-educalion across all year groups. At the end of the reporting period the Group holds lolal funds of £19,846,517 (2022.. £19,506,948). Al the end of the reporting period the Group holds gross cash lolalling £3,489.432 12022.. £3,994,837) and nel Cash (after bank and other loans) tolalling £2,614,43212022.. £2, 784,212). The amount of funds which are reslricled and not available for general purposes of the Charity al the end of the rerK)rting period were £2,754.093 {2022.' £2,842, 754). Al the end of the reporting period Ih8r& were (Sesignaled funds of £2,029,59712022.. £36,237). The increase on previous year was the introduction of a Development Capital Expenditure Fund lo which £2m was sel aside for future Capital Developments. Al the end of the r8POrting period the following fundslamounts can onw be realised by disposing of langible fixed assets or programme related inveslmenls-. Tangible fixed assets £21,054,82412022.' £20,073,550). After making allowance for any reslricled funds, designations, commitments Inol provided for as a liability in the accounts) and the carrying amount of functional assets which the School needs lo deliver ils objects, there are no free reserves. Al the end of the reporting period a comparison of the amount of resetves held with the Charity's reserves policy was made. PUBLIC BENEFIT In furtheran¢8 of these Dbjeclives Reading Blue Coal School Governors, as charity Iruslees, have complied with their duty in s.17151 of the Charities Act 2011 to have due regard lo the Charity Commission's published general guidance concerning the operation of the public benefit requirement under that Act. A summary of the public benefit offered is as follows- Means Tested Assistance.. A lolal of £781,459 12022.. £787, 7051 was spent on means-lested support which was 5.2% of the School's gross fee income. Assistance was provided in the form of 39 bursaries and 14 Foundation Scholarships, i.e. a total of 53 or 70k of the pupils received some support. Foundation Scholarships cover 100% of school fees and also provide some additional assistance with costs. Page 7 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Funding Arrangements- RBCS has a funding arrangement in place with Rea(Jing Blue Coal and Archbishop Laud Charitable Trust. Aldworth Partnership.. The School is proud ol its historic links with the town of Reading and the Ancient Parish of Sonning, as wdl as Ils more recent links with the Borough of Wokinyham, and strives lo build on and strengthen those links, so as lo be recognised as an important member of the local community. The Aldworth Parinership is the umbrella leTm for student led outreach work by the School in the local area and local community. Students participate in local service by leaching in local primary schools and running on site visits lo benefit from our facilities. Currently sludenl participation is strong and the aim is for 811 students lo be involved in some sort of service or outreach work during their lime al the School. All students lundraise through their respective Houses and all proceeds go into the Aldworth Partnership Fund, which provides equipment lo ￿ used in partnership sch(x)Is. A sludonl-led committee, led by Aldworth Partnership prefects, help oversee fundraising aclivilies. The a¢livilies ol the Alcsworth Partnership for local service in the last year has induded= Fundraising events lo support charities including the Me2 Club. Continued lo work on and grow produce to be donated lo a local foodbank. The Music Aldworth Partnership group performed music con¢ertsl ran music groups in Collelon Primary Sch(x)I, Highwood Primary School, and The Birches Care home in Earley. Staff, Students and Parents, all donated items lor the k)cal crisis charity donations included Easter eggs and presents. Each week students visited The Cowshed and helped sort through donations and helped distribute them lo local families. Students visited Highwood Primary School on a weekly basis lo run sports programmes for the students. Each week the students have visited Addinglon School. a special educational needs school. and run lunchtime clLJbs and games for them. Highwood Primary School use our sporting facilities including the swimming pool. Students have run academic sessions al local primary schools that have Included Geology, Computer scIen￿ and Languages groups. We have held Co-curricular days for Year 6 pupils from Highwood Primary School. These have included team building activities and sports teams. Use of the School facilities by the local community The Sch(K>l supports the local community in the following ways.. Liaison with local primary schools. induding luloring, coaching and supporting music. Sharing the School's sports facilities with local schools and community gioups.. Providing access to its performing arts facilities lor educational concerts and other similar events., A programme of placements where Blue Coat pupils assist with teaching in local primary schools., Community service and environmental projects in the I(￿al a￿3., SuppDrt by pupils for local ¢harilies, particularly Ihoso relating lo services for homeless people. Page 8 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GLIARANTEEI REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Equal Opportunltiès The School wel¢om&s puiils frc*n all backgrounds. To admit a prospective pupil. the School needs to be satisfied that il will be able lo educate and develop a prospective pupil lo the best ol their polenlial. An individual's econorni¢ slalus, gender. race, sexuality, religion or disability do not form part of our assessment process. The SchcK)l is an equal opportunities employer, and this is laid out in the Employee Handbook. Full and fair consideration is given lojob application5 from candidates of all backgrounds whatever their economic slalus, gender, race, sexuality, religion or disability. Due consideration is given lo the training and employment needs of all staff who work al the School. The SchoDI will make reasonable adjuslmenls lo meet the needs of pupils or staff who are or who become disabled. Employee Engagement The Governing Body is kept fully inform8d of any employee concem5 through regular formal and informal briefings from the Headmaster and Bursar. The Governors are commilled lo promoting a positive and healthy environment for all staff al the School for both their physical and mental wellbeing. The Govemors promote inclusion in the Workpla￿ and provide resources for training and development opportunities for all Staff. The Governors encourage recruilmenl and development strategies which seek to allract and relain talented staff. Al inleNals through the year, usually immediately prior to the start of a term, Professional Development Days are held during which briefings and staff training lakes I￿a￿. Elements of these days will apply lo the whole school staff, both academic and operational. with other periods being applicable to speciflc roles, functions or training requirements. Training on these days will often include training on safeguarding, data protection. and health and safely, as well as briefings on the School's development and strategy. FUTURE PLANS The Board's current five-year strateglc plan, reviewed on an annual basis. has the following key ot4'ectives'. 11 To maintain a reputation as a leading independent s¢hocA in the region giving 8xcellenl value for money- 21 TD maintain the current high standards of academi¢ athievemenl as measured by extemal public examinations and independent value-added criteria together with a range of co-curricular activities lo provide an all-round education. 31 To extend ¢o-edu¢alion lo all year groups, Commencing with the intake of Year 7 glrls in September 2023, ancs be fully co-educational by September 2027. 41 To continue lo upgrade the School's buildings, and ensure facilities are appropriate for the School lo be co-educalional across all year groups by 2027. 51 To maintain adequate financial assistance available for both additional bursaries and hardship bursaries. in¢luding 14 means-lestecs Foundation Scholarships. 61 To continue to build links with local primary schools in both state and independent sectors. 7) To build up the level of anullary activities on sile lo generate income and encourage educational and children's activities on site. 81 To maintain a fund-raising programme to SUPFX)rt bursaries and capital prqecls. 91 To continue to ￿lId and encourage communily access to the School's facilities. RISK MANAGEMENT The Governing Body continue lo keep the School's adivilies under review, particularly with regard lo any major risks that may arise from lime lo lime. The risks that the Governors identify are reviewed. and systems or procedures are pul in Pla￿ lo manage those risks. The Governors, risk management policy is focussed on the following areas.. Page 9 READING BLUE COAT SCHOOL IA COMPANY LIMITED B Y GUARANTEEI REPORT OF THE GOVERNORS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Ensuring an appropriate governan¢e structure is in pla￿ for the School. The School has adequate and appropriate facilities and operational infraslruclure in orderlo support academic, co-curricular and pastoral objectives. To safeguard the wellbeing of all PLJpiIs. Compliance with all relevant legislation and regulations, including Health and Safety. Educational standards are maintained at a high level. The Schools finances are managed in order lo maintain long term viability. External threats lo the activities, operations and fInan￿S of the Schwl are identified and miligaled where possible. During the previous academic year, the School has managed lo finance the increase in contributions lo the Teacher's Pension Scheme that came into effect on 1 September 2019. The Finance and General Purpose Committee is aware that the Teacher's Pension Scheme contribution rale will materially increase again from April 2024 and, in line with many other independent schools, is taking professional advice lo understand the affordabillly of the Scheme and options going forward. Principal risks and uncertalntles The Senior Leadership Team and Governing Body is working Ilargely through the Education Sub-commillee} lo ensure that acadernic results are not only maintained bul improved. especially at A Level. The School is working hard to control increases in costs in orderto maintain ils financial flexibilily. In addition. new ways lo maintain the surplus will be developed, such as additional ancillary educational activities, lellings and fund raising. The Governing Board and the Senior Leadership Team are closely monitoring political devolopmenls that may impact the Sch(x)l and the wder independent school landscape. The impact of potential threats are being assessed on a dynami¢ basis, and plans for miligalion have been developed which are based around protecting and growing income levels through pupils numbers and managing the School's cost base more efficiently. These miligaling actions will continue lo be updated as threats evolve and potentially cryslallise. The decision lo extend co-educalion across 811 year groups was supported by a detailed long term financial model that considered various scenarios and sensilivilies in relaliDn lo both pupil numbers and the extra costs that are likely to be Sncurred. The Goveming Body is satisfied that for all major risks identified for the Group appropriate controls have been pul in place and maintained lo miligale those risks adequalely.11 is recognised Ihatsyslems can provide only reasonable bul not absolute assurance that major risks have b￿n managed. This Annual Report, prepared under the Charities Act 2011 and the Companies Act 20(￿, was approv￿ by the Governing Body of the Reading Blue Coal Sd)ool on including in their capacity as company directors approving the Strategic Report contained therein, and is signed as aulhorised on its behall by.. H Williams Chair of Govgrnors Page 10 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI STATEMENT OF GOVERNORS, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023 The Governors (who are also directors of Reading Blue Coat School for the purposes of company lawl are responsible for preparing the Governors, Annual Report and the financial slalements in accordance with applicable law and Uniled Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Slandardsl. Company law requires the Governors to prepare financial slalemenls foreach financial year. Undercompany law the Governors musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the slate of affairs ol the charitable Company and the Group and of tho incoming resources and application ol resources, including the income and expenditure. of the Charitable Group for that period. In preparing these financial slalemenls, the Governors are required lo.. select suilable accounting policies and then apply them ¢onsistenlly', observe the methods and principles in the Charities SORP. make judgements and eslimales that are reasonable and prudenl., slate whether applicable UK accounting standards have been followed. sublecl lo any material departures isclosed and explained in the financial slalem8nls', and prepare the financial slalemenls on the going concern basls unless il is inappropriate lo presume that the charitable company will continue in business. The Governors are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's Iransaclions, disclose with reasonable accuracy al any time the financial position of the charitable company and enable them lo ensure that the financial slalemenls comply with the Companies A¢t 2006 and the provisions of the charity's conslilulion. They are also responsible for safeguarding the assets of the charity and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 11 Crowe Crowe U.K. LLP CharteredA¢¢trunl¥nls Member ￿ Crowe Global Aquis House 49-Sl Blawave Slreel Reaising Btrrkshlre RG1 1PL. UK Tel +44 101118 959 7222 Fax +44101118 958 4640 www.uowe.co.uk INDEPENDENT REPORT OF THE AUDITORS, TO THE MEMBERS OF READING BLUE COAT SCHOOL Oplnlon We have audited the financi81 slalemenl8 of Reading Blue Coal School for the year ended 31 ALJgust 2023 which ¢ompris& the Group Slalemenl of Financial A¢livilios, the Group and Company Balan￿ Sheets, the Group Cash Flow Slalemenl and notes lo the financial slalements, induding a summary of significant accounting poliaes. The financial reporting framework that has tEen applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial RetN)rting Standard applic2ble in the UK and Republic of Ireland (United Kingdom Generally Accepted Aecounling Pradicel. In our opinion the financial slalements.. give 8 true and fair view of the slate of the GroLJP'S and the charitable company's affairs as al 31 August 2023 and of the Group's incoming resources and application of resources for the year then ended., have been properly prepared in accordan￿ with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in accordance wlh International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibilities for the audit ol the financial slalemenls section of our report. We are independent of the Group in accordance with the ethical requirem&nts that are relevant lo our audit of lh8 financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basls for our opinion. Conclusions relating to golng concern In auditing the financial slalemenls, we have ¢on¢luded that the Governor's use of the going cc¥)cern basis of accounting in the preparation of the financial slalements is appropriate. Based on the work we have performed, we have not identified any rnalerial uncertainties relating to 8venls or conditions that, individually or cdleclively. may cast sgnilicanl doubl on the charitable company's ability lo continue as a going concern for 8 period of al loast twelve months from when the financial slalemenls are aulhorised for issue. Our responsibilities and the responsibililles of the Govemors with respect to going con￿rn are described in the relevant sections of this report. Crowo U.K LLP1s 4 lvrril￿j fill￿717￿ In En4Bnd ar￿w￿l￿MIlhle￿l5I￿ed nUM￿lOCa0701j.Th￿ 55LL*ale HI*, Lonthin EC41A 7JVd. Allglollhe LLPS membaL81& avaI￿lI￿al I￿1￿1&1￿￿￿ oMc8.PJ knSthnqp￿￿￿1l￿era ￿ Iho ¥con&*d In Ihg UK by liè Insts￿￿ PraCmNJno￿A$1l￿1allo￿. Ciowo U.K. LLPIS afflqwbgrolCNèGlobal. a S%l&svwèln. olCrnw8GILthI SOP4T8￿and 1ndwdÉnikgalèn￿try U.K. LLPandltss[llia￿5 Page 12 , Crowe INDEPENDENT REPORT OF THE AUDITORS, TO THE MEMBERS OF READING BLUE COAT SCHOOL (CONTINUED) other information The Governors are responsible for the other informalK)n (x)ntained within the annual report. The other information comprises the information included in the annual report, other than the financial slalemenls and our auditor's report Ihereon. Our opinion on the financial slalemenls does not cover Ihe other infomialion and. except to the exlenl otherwise explicitly slated in our report. we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomialion and, in d(yng so, consider whether the other information is materially inconsislenl with the finan(aal slalements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls. we are required lo determine whether this gives rise to a material misslalement in the financial statements themselves. If, based on the worff we have performed, we Conclude that there is a material misslalement of this other infomialion, we are required lo report th81 fact. We have nothing to retK>rt in this regard. Opinions on other matters prescribed by the Companios Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the g0veM￿S, report, which includes the directors, report and the strategic report prepared for the purposes of company law. for the financial year for whlch the flnancial slalemenls are prepared is consistent with the financial statements.. and the strategic report and the directors, report induded within the governors, reFK)rt have b￿n prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In light oflhe knowledge and understanding oflhe Group and the ¢haritable company and their environment obtained in the course of the audit, we have not identified material misstalemenls in the strategi¢ report or the directors, report Included within the governors. report. We have nothing lo retK>rt in respect of the following matters in relation lo which the Companies Act 2006 requires us lo report to you if. in our opinion.. Ihe parent company has not kopl adequate accounting records,. or the parent company financial slalemenls are not in agreement with the accounting records and returns., or certain disclosures of governors, remuneration specified by law are nol made,. or we have not received all the inform81ion and explanations we ￿qUIre for our audit. Responsibilities of governors As explained more fully in the goveinor5' responsibilities slalement on page 11, the governors (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair wew, and for such internal control as the governors determine is necessary to enable th8 preparation of financial slalemenls that are f￿e from material misslalemenl, whether due lo fraud or error. In preparing the finan￿al slalemenls, the govemors are responsible for assessing the Group's or the charitable company's ability to continue as a going concern. disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the governors either intend to liquidate the charilal￿e company or lo Cease op8ralions, or have no realistic allemalive bul lo do so. Page 13 }[ Crowe INDEPENDENT REPORT OF THE AUDITORS, TO THE MEMBERS OF READING BLUE COAT SCHOOL (CONTINUED) Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial slaletllenls as a whole are free from material misslalemenl, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a gLJaranlee that an audit conducted in accordance with ISAS (UK} ¥MII always delecl a material misslalemenl when il exists. Misslalemenls Can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis oflhese finanual statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.or .uklaudilorsres nsibililies. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularitia$. includlng fraud Irregularities. including fraud, are instances ol non-¢omplianc¢ with laws and regulations. We identified and assessed the risks of material misslalemenl of the finanaal slalements from irregularities, whether dLJe lo fraud or error, and discussed these between our audil team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufliaenl and appropriate lo provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the Group and charitable company operates, focusing on those laws and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the financial slalemenls. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP IFRS 102) and the Charities Act. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement i18ms. In addition, we considered provisions of other laws and regulations that do not have a direct effed on the financial slalemenls bul Compliance with which might be fundamental to the Group and charitable company's ability to operate or lo avoid a material wnally. Wè also considered the opportunities and incentives that may exist within the Group and chafilable company for fraud. The laws and regulations we considered in this context for the School were The Education Ilndependenl School Slandardsl Regulations 2014, Safeguarding regulations, Health & Safely legislation, General Data Protection Regulations and Food Hygiene Standards. Auditing standards limit the required audit procedures to identify non-complian￿ wth these laws and regulations lo enquiry of the Governor8 and other management and inspection of regulatory and legal cor￿SpOndence. if any. INe identified the greatest risk of material impact on the finanaal statements from irregularities. induding fraLJd, lo be within the liming of recognition ol certain non fee income, and the override of controls by management. Our audit procedures lo respond lo these risks included enquiries Df managern8nl, and the Finance and General Purposes Committee about their Olhn idenlilicalion and assessment of the risks of irregularities, sample testing on the posting of journals and certain non-fee income streams, reviewing accounting eslimales for blases, reviewing regulatory correspondence writh the Charity Commission, Independènt Schools Inspectorate and reading minutes of meetings of those charged with governan(*. Owing lo the inherent limitations of an audit, Ihore is an unavoidable risk Ihal we may not have detected some material misslalfyments in the financial slalemenls, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the lurther removed non- compliance wlh laws and ￿gUlationS lirregulariliesl is from the events and transactions reflected in the financial slalemenls, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-deleclion of irregularities, as these may involve collusion, lorgery, inl8nlional omissions, misrepresenlalions. or the Override of internal controls. We are not responsible for preventing non-compliance and cannot be expected lo delect non- compliance with all laws and regulations. Page 14 ## **Crowe A** ## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF READING BLUE COAT SCHOOL (CONTINUED)** ## **Use of report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Janette Joyce Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor Aquis House 49-51 Blagrave Street Reading RG1 1PL Date: 28 November 2023 Page 15 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORA TING AN INCOMEAND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023 Unrestrlcted Restricted Total funds funds funds 2023 Total funds 2022 Note INCOME AND ENDOWMENTS FROM.. Income from chariiable acllvltles School lees receivable Ancillary trading income 13,950,791 2.140,338 13,950,791 2,140,338 13,823,919 1, 164,502 Other tradlng activities.. Bank interest Non-ancillary trading income Trading income 60,208 40,679 153,929 60.208 40,679 153,929 667 57,564 161,313 Grants and donations 190 918 481380 Total incorne 16 381 776 155 087 16 536 863 EXPENDITURE ON.. Charitable activities School operating costs {15,863,650} 1252,127) (16.115,7771 (13,980,379) Ralslng funds Trading expenditure Financtng and other costs 114,7761 114.776} (7,822) rotal expenditure 10 15 945 167 252 127 16 197 294 14 062 738 NET INCOMEIIEXPENDITUREI 436,609 197,0401 339,569 1,627.20T Transfer NET MOVEMENT IN FUNDS 428.230 188,6611 339,569 1,627,207 Total funds brought fornard 16 664 194 2 842 754 19 506 948 17 Total fund$ carried forward 21 The notes on pages 19 to 37 form part of these financpal slalements Page 16 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI CONSOLIDATED AND CHARITY BALANCE SHEErs AS AT 31 AUGUST 2023 COMPANY REGISTERED NUMBER: 04243510 Group Charlty Note 2023 2022 2023 2022 FIXEO ASSETS Tangible assets Investments 14 15 21,054,824 20.073,550 21,054,824 20.073,550 CURRENT ASSETS Debtors Cash in hand 16 425,352 348943 425,529 512,607 495,816 3 779 110 3,914,784 4.420,366 3,783,561 4,274,926 CURRENT LIABILITIES CREDITORS: Amounts falling due with5n one year 17 4 052 327 NET CURRENT ILIABILITIESII ASSETS) 361 092 666 121 222 599 TOTAL ASSETS LESS CURRENT ILIABILITIESIIASSETS 20,512,183 20,434,642 20.388,705 20,296, 151 CREDITORS.. Afflounls falling due after more tha one year 18 927 694 665 666 TOTAL NET ASSETS UNRESTRICTED FUNDS General Funds 22a 15.062,827 16,627,957 14,939,349 16.489,466 DESIGNATEDFUND5 22b 2,D29,597 36,257 2,029,597 36.237 RESTRICTED FUNDS lincludes a revaluation reseNe of £2,719.2001 22c 2 754 093 2 842 754 2 754 093 2 842 754 TOTAL FUNDS 21 The profil for the finanoal year deall within the linancial slalemenls of the parent charily was £354,582 (2022.. £1,4g6, 165). Approved by the Board ol Governors on.. and signed on ils behalf by.. H Williams Govemor The notes on pages 19 to 37 fomi part of these financk?I slalements Page 17 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Cash flows from operating activities N81 income for the year las per SOFA) Interest receivable Depreciation Decreasel(in¢reasel in debtors Increase in creditors Interest paid 339,569 160,208} 1,036,186 177 609,843 1.627,207 f66T) 1,095, 793 (202,592) 124,957 Cash generated by operating actlvities 1973 570 2 683 895 Cash flows from investing activities Purchase ol tangible fixed assets Interest received 12,017,460} (1,519,539) 667 Cash flows used in investing activities 1957 252 1518 872 Cash flows from financing actlvltles Hire Purchase capital repayments Interest paid Nel movement of advance fee contracts Bank loan payments in the year 16,8411 148,0031 131,2541 335 625 (21, 126) (39, 19T) (242.516) Cash used in financing activities 521723 1058418 Change In cash and cash equlvalents In the year 1505,4051 106,605 Cash and cash equivalents at the beginning of the year 3 888 232 Total cash and cash equivalents at the and of the year The notes on pages 79 to 37 form part of these financial statements Page 18 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 COMPANY INFORMATION The School's princApal aclivrty In the year undèr rev￿ was the ￿1vancOmenI of fjducalK)n by carrying on or managing schools for IM)ys and girls under Ihe age of 19 years. The incortK)ralod charity Iregislered number 04243510 and charily nUM￿r 1087839). is incorporated and domKiled in the UK. The ￿$dreSs ol the r8gislered office is.. Hol￿￿ Park, S0nning￿n-Thame$. Reading. RG4 6SU ACCOUNTING POLICIES AGwuntlng convention The finanryal slalements have been prePa￿d in aCcc￿3n¢e with Aw)unling and Reporting by Charib'es.. Statement of Recommended Pract￿8 8ppl1¢￿b￿ lo charili&s preparing their acc(xJnls In accordance with the Financial Rewrting Standard applicab￿ in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191- Charities SORP {FRS 10211, Ihe Financial Rew)rlirvJ standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Reading Blue Coal School meels the definition ol a public benefit entity undgr FRS 102. Assets and liabililigs are initially recognised al historical cost or transaction value unless otherwise slated in Ihe rdevant aco)unting wh'cy nole{sl. b) Golng concern A budget for the year ending 31 August 2024. including cash woiectK)ns, has been prepared on a consolidated basis for Iha School and Ihe Trading Company. This bLKlget. and the assumptions on whlch il Is based, were agreed by the Finance Committee al their meeting on 11 September 2023 together with financial projectlons for the School forthe next 5 years. After careful raview of the forecasts. and their underlying assumptions, the Governors agree that bolh the Schwl and the Trading Company have SUff￿ent financial resources, and conllngency plannlng Is adequate lo ensure the ats'lily of both enlilies lo cx)nlinue as a going concem for the foreseeable future. The Govemors a(￿n0￿edge that the ¢)Jrrenl operating ellwronmenl is highly unceriain and are Iherefore regularly reviewng Ihe wnpact on strategy as well as, In parti(JJlar. the longef-lem) linanual stability ol the Sch¢x)l. Accordingly, Ihg Governors believe the School's financial resources are suffiaenl lo ensure the School will continue a8 8 golng concem for the foreseeable future, belng al least 12 months from the dale of approval of the financial statements and have Iher8fore prepared the linancial stalements on a g(Mr¥J COr￿M basis. Group financlal statements These financial slal8menls consolidate the results of the Charity and ils svbsidkiry Reading Blu8 Coat School (Tradingl Limited on a line-by-line basis. No separate Slalemenl of Financial Activities has been presented for the Charity as permllled by Section 408 of the Companies AGI 2006. The surplus of income and expenditure for th8 chaiily (excluthng Trading) for the year was £354,582 (2022.. £1.496. f 65). Page 19 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Income All incoming resources are included in the Slalement of Financial A¢livilies when the Charity is legally enlilled lo the income and tho am￿￿1 can be quantified with reasonable accuracy. Fees and similar income Fees ￿CeiVable and similar income are accounted for in the period in which the service is provided. Fees receivable are slated after deducting allowances. scholarships, bursaries and other remissions granted by the School. Donations policy Voluntary incoming resources are accounted for as and when enlillemenl arises, the amount can be ￿liablY quantified and the economic benefit lo the School is considered probable. Voluntary income forlhe School's general purposes is accounted for as unreslricled and is credited to the General Fund. Vvhere the csonor or an appeal has imposed trust law regulations, voluntary income is credited lo the relevant restricted fund. Gifts in kind are valued at eslimaled open market value al the dale of gift, in the case of assets for retention or consumption, or al the value lo the Sch(x)l in th8 case of donated services or facilities gl Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted lo present value for longer term liabilities. Expenditure is allocated lo expense headings ettheron a direct cost basis or apportioned according to lime spent. The irrecoverable element of VAT is induded with the item of expenses lo which il relates. h) Tangible fixed assets Tangible fixed assets are slated in the balance sheet al cost less accumulated depreciation. Depreciation is calculated so as lo write off the cost of an asset, less ils estimated residual valug, over the useful economic life of that asset as follows-.- Leasehold land and buildings New buildings lincluding mechanical and electrical fillings) Improvement lo existing buildings Fumiture and equipment Plant, machinery and equipment Motor vehicles Computer equipment 125 years 40 years 20 years - 5 years - 5 years 5 years 3 years Assets under £1.000 are expensed lo the Slalemenl of Financial Aclivllies. Lease commitment$ Operating leases are charged to the Slalement of Financial Activities in the year in which they are incurred. Page 20 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 ACCOUNTING POLICIES Icontinuedl Assets obtained under finance leases are capilalised within the balance sheet and are depreciated over their useful economic lives. The interest element of the lease is norfflally Charged lo the slalerllent of financial activities account over the leaso period. The capital element of the future payments Is treated as a liability. Pension The School Conlribules lo the Teachers, Pension Defined Benefits Scheme at rates sel out by the Scheme Actuary and advised lo the Board by the Scheme Adminislralor. The scheme is a mulli- employer pension scheme and it Is nol possible lo identify the assets and liabilities of the scheme which are atlribulable to the School. In accordan￿ with FRS102 therefore, the scheme is accounted for as a defined contribution scheme. The School also operates defined contribution group personal pension schem8 for non-leaching staff. This indudes an auto enrolmenl arrangement. Contributions lo the schemes aro Charged in the SOFA as they become payable, in accordance wlh the rules of the schemes. Cash and cash equivalents Cash is represented by cash in hand and deposits with financial inslllulions repayable wllhout penalty on noti￿ of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily COnve￿bIe lo known amounts of cash with Insignificant risk of change in value. k} Unrestrlcted General Funds These are funds which can be used in accordanco with the charitsble objects at the discretion of the Directors. Designated Funds These are funds that hav& been sel asid8 by the directors for particular purposes. The aim of the designated funds is set out in the notes lo the financial slatemenls. Restrlcted Funds These aro funds that can only be used for spealic restricted purposes within the objects of the charity as laid down by the donor. Expenditure which meets this criteria is charged to the fund. Further explanation of the nature and purpose of each fund is included in the notes lo the linanaal statements. Financial instruments Basic financial inslrijments indude cash, debtors and creditors. Debtors and creditors are initially recognised al transaction value and subsequently measured al amortised cost. Note 26 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring lo fixed asset investments and debtor balances excluding prepayments, and financial liabilities Teferring to all Creditor balances excluding deferred income Advance Fee Scheme creditors Amounts received under the School's Advance Fee Scheme Contracts for education not yel ulilised lo settle schoDI fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting dale and as long-lerm liabilities where the education will be provided in subsequent years. Page 21 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 ql Pupil deposits Under normal circumstan￿S pupil deposits will be repaid over future years when the pupils complete their education al the School, pupils can leave al earlier dales. The School dces not therefore have an unconditional right to relain the individual deposits for at least 12 months after the balan￿ sheet dale and, in line with the requirements in FRS 102. the balance of the deposits held al 31 August have been included within current liabilities. SIGNIFICANT JUDGEMENTS AND ESTIMATES In the appli¢alKJn of the Charity's accounting policies, which are described in note 2. Trustees are required lo makejudgemenls, eslimales and assumptions atx)ul the Carrying values of assets and liabilities that are not readily apparent from other sources. The eslimales and underlying assumptions ar8 based on historical experience and other factors that are considered lo b& relevant. Actual results may diffgr from these eslimalgs. The eslimales and underlying assumptions are reviewed on an On-g￿ng basis. Revisions lo accounting eslimales are recognised in the period in which the estimate is revised il the revision affects only that period or In the period of the revision and future periods if the revision affects Ihg current and future perlods. The Trustees consider Ihal there are no material judgements in applying accounting policies or key sources of eslimalion uncertainly. SCHOOL FEES 2023 2022 The School's fee income comprised.. Gross fees 14,985.214 14,857,747 Less.. Discounts Scholarships and bursaries {211,6491 822 774 (193.810) 840 018 ANCILLIARY TRADING INCOME Sch(x)I trips and aclivllies School lunches Registration fees Exam fees Pupil recharges School transport Miscellaneous 521,093 579,519 51,300 137,023 101,118 634,608 115 677 211,477 622,399 50.340 105, 734 96,689 NON-ANCILLIARY TRADING INCOME 2023 2022 Miscellaneous income Page 22 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 TRADING INCOME AND EXPENDITURE The School owns 10010 of Reading Blue Coat School (Trading) Limilod (company number 42426601. Ils regisler&d office is as per Note 1. This company manages the external lellings of the School's facilities. A summary ol the results of the subsidiary is shown below.. 2023 2022 Turnover 153929 161313 Gross Profil 153.929 161,313 Administration Expenses {30,4511 (22.822) Tax Payable Surplus pre gift aid paid Retained earnings for the beginning of the peri(xl Profil for the year Gift aid donation 138,491 123,478 138 491 7,449 138,491 Retalned earnlng$ at the end of the year Administration costs Include a management charge from the School of £15,67512022.' £15,000) which is eliminated on consolidalion. The aggregate amount of share capital and reserves of Reading Blue Coal School (Trading) Limited as al 31 August 2023 was £123.480 (2022.. £138.493). GRANTS AND DONATIONS A total of £190,918 12022.. £481,380) was included in donations. induding a lolal of £147,587 reslricled for bursaries12022.. £219,562). FINANCING AND OTHER COSTS 2023 2022 Bank and loan interest Other finance costs 48.003 39, 197 Page 23 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 10. TOTAL RESOURCES EXPENDED-GROUP 2023 Total 2023 Total 2022 Staff costs Depreciation Other Charitable actlvldes School operating costs.. Teaching costs welfa￿ ¢osts Premises costs Support costs of schooling 7,622,369 258,971 519,993 2,117,667 1,098,360 1,237.145 9,740,036 1,357,331 2,793,324 7,733.871 1,501,646 2,523,753 1,036,186 1476 831 748 255 2 225 086 2 221 109 9 878 164 1036 186 5 201 427 16 115777 13 980 379 Expenditure on raising funds Trading expenditure Financing and other costs (Note 91 14,776 14,776 T,822 Total resources expended 2022 COMPAR4TIVE 14 School operating Gosts.. Teaching costs Welfare cosls Premises costs Support costs of schooling 6,988, 743 226,529 488, 733 745. 128 1,040,028 1,174,376 7,733,871 1,501,646 2,523,753 6,931.660 1. 114.600 2.707,407 235,089 860, 704 843 615 2 221 109 2 166 531 9 081499 3 803 087 129201 Expenditure on raising funds Trading expenditu Financing and other costs (Nole 9J 7,822 7,822 10.515 81159 ￿￿883 Tot&1 resou￿8 expended 11. NET INCOMEIIEXPENDITURE)- GROUP 2023 2022 Net income Is stated after charging: Depreaalion - Owned assets - Assets on HP Audit - Other servI￿S 1,033,005 3,181 21,075 5,595 3,070,670 25, 123 18,650 4,270 Auditors, remuneration Operating leases Included in support costs are governance costs of £25,995 (2022 £21,663). Page 24 READING BLUE COAT SCHOOL IA COMPAP4Y LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 12. STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pènsion costs 7,613,538 6,999,428 800,544 736. 749 2 13453 Included in wages and salarles ar8 £42,380 of settlement costs (2022.. £Nil). No. No. The average numb&r ofemployees in the year was.. Teaching Welfare Premises Support 97 16 17 78 95 14 18 2022 2021 The following number of gmployees exceeded £60,000 emoluments (inclu(Ilng gross pay and taxable benefits): £60,000 - £70,000 £70,000 - £80.000 £80,000 - £90,000 £90,000- £100,000 £170,000- £180,000 £210,000- £220,000 10 The number of higher paid employees in the Teachers, Pension sch&me The number of higher paid employees in a Delined Contribution scheme Total cost of Employerfs contribulions in relation lo the above None of the Governors received remuneration, reimbursement of expenses or other benefits in the year12022.' Nilj. Key management personnel comprise the Governors (Direclorsl and the key management personnel listed on page 2. They recewed aggregate remuneration (including employer's pension and employerfs national insurance) of £1,097,521 (2022.. £974,385). 13. TAXATION Reading Blue Coat School is a charity and enlilled for the current year lo the exemptlons provided by Section 505 Income and Corporation Tax Act 1988. Page 25 (ots) c U<< < a FOR THE YEAR ENDED 31 AUGUST 2023 18. CREDITORS- Amounts falling due after more than one year Group 2023 Group 2022 Charity 2023 Chanty 2022 Bank loan (see below) Advanced fees (see Note 191 575,000 875,000 575,000 875,000 The School has two bank loans with Lloyds TSB. Both loans are secured by a legal charge over the leasehold properties. The balan¢@ of the first loan has bèen repaid in full by the year end (2022.. £35,625). This loan had interest charged at a fixed rale of 6.3010 on it. In July 2020, a CBILS loan of £1.5 million was drawn down. The balance of the loan al the 31 August 2023 is £875,00012022.' £1, 175,000). This loan has Interest charged al a rate of base plus 1.06Vo and is due for final repayment in July 2026. On 29 September 2023 a £500,000 tranche of the CBILS loan was repaid. The malurily of the bank loans are analysed as follows.. 2023 2022 Wilhin one year Between one and two years Between two and five years 300,000 300,000 275 000 335,625 300,000 Page 29 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 19. DEFERRED INCOME. ADVANCED FEES Parents may pay lump sums to the School as advance payment of future fees. Assuming pupils remain in the School. advance fees received will be applied as follows.. 2023 2022 Within one year Within 2 10 5 years 303,046 472,272 The balance represents the accrued liability. The movements in the period were.. Balance al 1 September 2022 Recelpls from contracts Discounts allocated Advance fees ulilised 524.966 641,214 11,245 713 767,482 393,314 10,303 646 133 Balance at 31 August 2023 20. PENSION COSTS There are two pension schemes available lo certain employees of the School. the Teachers. Pension Scheme, and a Group personal pension scheme. Teachlng Staff - Defined Benefit Scheme The School participates in the Teachers, Pension Scheme I'the TPS'I for ils leaching staff. The pension charge for the year includes contributions payable to the TPS of £1,174,29012022.' £1,084,992) and al the yearend £133,268 12022.. £f24,6651 was accrued in respect of contributions lo this scheme. The TPS is an unfunded mulli-amployer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 las amended) and The Teachers, Pension Scheme Regulations 2014 las amended). Members wnlribule on a'pay as you go" basis with contributions from members and the employer being credited lo the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rale Is sel by the Secretary of Slate following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report. which was published in October 2023. Page 30 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Following the Mccloud judgment, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 10 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits. and in preparing th8 2020 valuation have valued the 'grealer value, benefits for groups of relevant members. The valuation confirmed that the employer contribution rale forthe TPS would increase from 23.6% to 28.60/0 from 1 April 2024. Employers are also required lo pay a scheme adminislralion levy of 0.08¥o giving a total employer Contribution rate of 28.68 /0. Non.Teachlng Staff The Company conlribules on a money purchase basis lo a Group personal pension scheme. Contributions lolalling £289,792 (2022.. £260,330) were payable to this scheme for the year. Contributions tolalling £28.370 (2022.. £29.803) were unpaid al the year end. 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Fixed Assets Net Current Assets Long Term Liabllities Total 2023 Restricted Funds Unreslricled Funds 2,719,200 18 335 624 34,893 577 534 2,754,093 17 092 424 665 666 2022 COMPARA TIVE- ANAL YSIS OF NET ASSETS BETWEEN FUNDS Fixed Assets Net Current Assels Long Term Liabilities Tolal 2022 Restricted Funds Unr8slricted Funds 2, 745,600 17327950 97. 154 2,842, 754 16664 194 927 694 Page 31 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 22a. UNRESTRICTED FUNDS- MOVEMENT IN THE YEAR Balance at 1 September 2022 Balance at 31 August 2023 Incoming ResOur￿S Resources Expended Transfer General Funds- School Trading Company 16,489,466 16,216.192 138 491 153929 115,756.5701 {2,009,7391 168 942 14,939,349 123 478 Tho School funds are hel(J lo maintain the leasehold properties and lo cover normal fluclualions in working capital, future development costs and general reserves. 2022 COAdPARA TIVE- UNRESTRICTED FUNDS- MOVEMENTIN THE YEAR Balance al 1 Seplember 2021 Balance at 31 Augusl 2022 Incoming Resources Resources Expended Transf8r General Funds- School Trading Company 14.914,508 15,276,297 161313 (13,841,295) 271 139,956 16,489.466 138491 437 22b. DESIGNATED FUNDS- MOVEMENT IN THE YEAR Balance al I S&plember 2022 Balance at 31 August 2023 Incoming Resources Resources Expended Transfer Charities Fund Muir Prize Fund Old Blues Fund Roger Johnson Fund Dr Fopp Public Speaklng Fund Staff Fund Headmaster's Scholarship Fund Allolmenl Fund Aldworth Partnership Fund Other designated funds Development Capital Expendilu Fund tf.T65 200 10,373 504 5, 780 578 112.6011 836 200 15,658 504 5,780 7,500 12,2151 497 11,5991 524 800 113 5,876 666 113 5,458 666 2,150 1,508 11,7321 {1,5081 2 000 000 2 000 000 Desgnaled funds are in respect of donations received, wh￿h are sel aside, al the discretion of the Governor8 for partlcular purposes. Page 32 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 2022 COMPARA TIVE- DESIGNA TED FUNDS- MOVEMENTIN THE YEAR Balance at I September 2021 Balance al 31 August 2022 Incoming R8sources Resources Exp8nded Transfer Charities Fund Muir Prize Fund Old Blues Fund RoggrJohnson Fund DrFopp Publlc Speaking Fund Slaff Fund Headmasters Scholarship Fund Allotment Fund Aldworth Partnership Fund other designated funds 18,573 200 11,228 g, T99 (16,607) 11,765 200 10.373 223 (1,078) 4,330 64t 870 113 3, 199 7. 700 532 (250) (595) (TO) 5, 780 578 113 5.458 666 4,622 666 (2,363) 22c. RESTRICTED FUNDS- MOVEMENT IN THE YEAR Balance al I S6pI 2022 Balance at 31 Aug 2023 Incoming Resources Transfer Resources Expended Sundry Funds Arthur Newbury Prize Embling Memorial Fund Surllmer Ball Fund Edwards Bequest Melrose Prize Ali Driver Sonning Grant Helen Wells Donation Hambling Donation Wilkinson Donation El Downey Donation to Chess Club Performing Arts Centre Sports equipment RO￿nn9 Fund i( 100 100 100 4.000 2.000 200 374 11 4.167 1.000 20 15.250 200 374 4,167 20 15,250 7,500 {7,5001 37, 763 {2,8701 34,893 Bursary Fund 59,391 147.587 1215,3571 8,379 Property Revaluation Surplus Fund 2719 200 Sundry Funds These are various donallons given with a specific ￿qUest that they be used for prizes or other specified purKX)ses. Bursary Fund This is a fund for donations given wlh a specific request that they are award￿ as bursaries. Property Revaluation Surplus Fund This has been set up lo cover the net book value of the leasehold property. Page 33 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 2022 COMPARA TIVE- RESTRICTED FUNDS- MOVEMENT IN THE YEAR Balance al 1 Sept 2021 Balanc& al 31 Aug 2022 Incoming Resources Transfer Resources Expended Sundry Funds Arthur Newbury Prize Embling Mernorial Fund Summer B811 Fund Edwards Bequest Melros& Prize Ali Driver Sonning Grant Helen Wells Donation Hambling Donation Wilkinson Donation El Downey Donation lo Chess Club Perfom7ing Arts Centre Rowing Fund 1( 100 loo loo 4,000 2,000 200 374 11 4. f 67 1.000 20 15,250 2,0(K) 200 3.414 (3,040) (389) 400 4,167 1,000 20 75,250 780 27,341 14,631 f4.209J 37,763 Bursary Fund 118. 185 21g,562 (139,000) (139.956) 59,391 Property ReValuat￿n Surplus Fund 2 745 600 23. CAPITAL COMMITMENTS Al 31 August 2023 the School had caExtal commitments amounllng to £Nil12022.. £349,861). 24. RELATED PARTIES There were the fdlowing transactions in the yearwith Reading Blue Coal School (Trading) Limited.. Management charge of £15,675 (2022.. £1 5.(X)O). Gift aid paid during the year of £138,491 (2022.. £7,449). The year-end balan￿ owed by Reading Blue Coal School (Trading) Limited is £130,771 {2022.. £108,324). Mr D J Few. a School Governor, who retired on 12 June 2023, was a partner al Blandy & Blandy LLP, the School's solicitors. During the year Blandy & Blandy LLP invoiced the School for services amounting lo £10.320 (2022.. £4.218J and at the year end Ihero was a Creditor of £Nil {2022.' £NilJ owng to them. In addition, Mr A Colpus, one of the School Govemors, provided consultancy setvices lo the Sch(K>l amounting lo £300 (2022.. £NilJ, and al Ihe year end there was no balance outstanding (2022.. £Nil). Page 34 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 25. OPERATING LEASE COMMITMENTS At 31 August 2023 the Sthool had future minimum lease payments under non-cancellable operating leases as follows.. Land and buildings 2023 2022 Other 2023 2022 Leases expiring.. In less than one year Between one and two years Between two and five years Greater than five years 60,000 60,000 180,000 5 880 000 60.000 60,000 180,000 5 88Q QOO 118,182 110,710 173,464 93.233 85.858 117,533 26. FINANCIAL INSTRUMENTS Financial instruments held at amortised cost are fees receivable. other debtors, prepayments and accrued income, amounts due from subsidiary and cash in hand. Financial liabilities held al amortlsed cost are bank loans. trade creditors, deposits repayable. other creditors, accruals and net obligations under finance leases, less deferred income. 2023 2022 GROUP Financia5 assets measured al amortised cost Financial liabilities measured al amortised cost 3,684.635 4, 194,802 The Group's income, expense, gains and losses in respect of financial instruments are summarised below.. GROUP & COMPANY 2023 2022 Interest income and expense: Total interest income for financial assets held at amortised cost Total interest expense for finanual liabililies held at amortised cost 160,2081 (667) 2023 2022 CHARITY Financial assets measured al amortised cost Financial liabilities measured at amortised cost 3,553,412 4,049,362 Page 35 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 27. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2023 2022 (Decreaseyincrease in cash in the year Net movement in Advanced Fe8 Scheme Loan repayments HP repayments 1505,4051 131,254 335,625 106,605 242,516 755,579 Chang& in net fundslldebll 131.685) 1.125,826 Nel debt al 1 September 2 252 405 1 126 579 NET FUNDS AT 31 AUGUST 28. ANALYSIS OF CHANGE IN NET FUNDS Nel d&bl as at I Seplember 2022 Net funds as at 31 August 2023 Cash Change Cash at bank and in hand Advanced Fee Scheme HP 3,994,837 (524,966) {6,841J 1505.4051 131,254 6,841 335 625 3,489,432 {393,7121 Loans 875 000 Page 36 READING BLUE COAT SCHOOL IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 29. COMPARATIVE 2022 STATEMENT OF FINANCIAL ACTIVITIES UnreslrKled funds Restricted funds Total funds 2022 INCOMEAND ENDOWMENTS FROM.. Income from Gharilable acliviéies School fees receivable Ancillary trading income 13.823,919 1, 164.502 73,823,919 1, 164,502 Other Irading sclivilies.. Bank inlergsl Non.anGillary Irading income Trading income 667 67.564 161,313 667 57,564 161,313 Grsnts and donations 247 187 234 193 481380 Total income 15455 152 234 193 15 689 345 EXPENDifuRE ON.. Ch8rilablo activities School operating cosls (13,810, T70) (169,609) (13,98Q.379) Raising funds Trading expendilu Financing &nd other costs (7,822) (7,822) Total expenditure 13 892 529 NET INCOME/(EXPENDITURE) 1.562,623 64,584 1.627,207 Transfgr 139 956 139 956 NETMOVEMENTIN FUNDS 1.702,579 (75,372J 1, 62T.207 Tolal funds brought fonvard 14 961615 12 Total funds caffied fO￿ard Page 37